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US home mortgage payment formula

This is the US home mortgage payment formula. Use it to calculate what your monthly, bi-weekly or weekly US home mortgage payments will be.

To be perfectly honest with you, this formula is a little bit complicated. And in order to use it you'll need paper, a pencil and a hand held calculator that has an 'exponent' button on it that usually looks like the following picture:

And the hand held calculator you use has to be accurate. To test to see if your calculator is accurate enough, type into it the number "0.05" then divide it by the number "2." If your answer is "0.025" your calculator is accurate enough. But, if your answer is "0.03" your calculator isn't accurate enough (cause it's rounding off numbers too soon).

One more point: you'll be using a lot of decimal numbers (like: 0.0042398729), and you'll need to write down all the numbers after the decimal point on your calculator screen.

Use this US home mortgage payment formula, by following twelve steps - starting with step one.

Pssst! You can also use the home mortgage payment calculators to calculate your home mortgage payments.

US home mortgage payment formula: Step one

The first step of using this US home mortgage payment formula, is to choose your mortgage principal.

On your piece of paper, write "step one answer = [answer goes here]."

A mortgage principal is the amount of money you want to borrow to get your home mortgage. So for example, if you want to borrow $100,000 for your home mortgage, then you would write down: "step one answer = 100000."

Move on to step two.

US home mortgage payment formula: Step two

The second step of using this US home mortgage payment formula, is to choose your mortgage amortization length. You can choose anywhere from a 5 year mortgage amortization length to a 25 year mortgage amortization length.

Note: If you want to choose an amortization length in half years, you'll need to use the number "0.5." So for example, if you want to choose a 5 1/2 year amortization length, you'll need to use the number "5.5".

On your piece of paper, write "step two answer = [answer goes here]."

Mortgage amortization is the length of time you want to take to completely pay off your home mortgage. So for example, if you want to have a home mortgage for 25 years, then you would write down: "step two answer = 25."

Move on to step three.

US home mortgage payment formula: Step three

The third step of using this US home mortgage payment formula, is to choose your mortgage rate.

On your piece of paper, write "step three answer = [answer goes here]."

A mortgage rate is the percentage of interest you'll be charged on your principal (the amount of money you borrowed) by your lender for borrowing money from them. So for example, if you choose a home mortgage rate of 5%, then you would write down: "step three answer = 5."

If you're getting a home mortgage, choose your rate from the list of the current mortgage rates below.

Or, if you're getting a multi-residential mortgage (a mortgage for a property that has more than one living unit like duplexes or apartment buildings), you'll have to choose a rate that you predict or hope you'll get for your multi-residential mortgage. Why? Cause there's never "set" mortgage rates for multi-residential mortgages: they're always different depending on your particular situation (your property type, how much you borrow etc.)

Current Mortgage Rates:

List rates however they are on the current rates page.A TABLE HERE I THINK.

Just so you know: these current mortgage rates are available from The Mortgage Store Online's "institutional lenders" (like banks and trust companies).

Move on to step four.

US home mortgage payment formula: Step four

The fourth step of using this US home mortgage payment formula, is to divide your step three answer by the number "100."

On your piece of paper, write:

So for example, if your answer in step three was "5" then you would write:

Move on to step five.

US home mortgage payment formula: Step five

The fifth step of using this US home mortgage payment formula, is to take your answer from step two and times it by the number "12."

On your piece of paper, write:

So for example, if your answer in step two was "5" then you would write:

Move on to step six.

US home mortgage payment formula: Step six

The sixth step of using this US home mortgage payment formula, is to take your answer from step four and divide it by the number "12."

On your piece of paper, write:

So for example, if your answer in step four was "0.05" then you would write:

Move on to step seven.

US home mortgage payment formula: Step seven

The seventh step of using this US home mortgage payment formula, is to take your answer from step six and add it to the number "1."

On your piece of paper, write:

So for example, if your answer in step six was "0.004166666666" then you would write:

Move on to step eight.

US home mortgage payment formula: Step eight

The eighth step of using this US home mortgage payment formula, is to take your answer from step seven and raise it to the exponent of the number you got in step five.

To do this, type your step seven answer into your calculator. Then, press the 'exponent' button on your calculator which usually looks like the following picture:

Then, type in the number you got in step five, and press the 'equal' sign (=).

On your piece of paper, write:

So for example, if your answer in step seven was "1.004166666666" and your answer in step five was "60" then you would write:

Pssst! Notice how many numbers after the decimal have to be used....it's important to write them all down!

Move on to step nine.

US home mortgage payment formula: Step nine

The ninth step of using this US home mortgage payment formula, is to take your answer from step one, and times it by your answer in step six, and then times that answer by your answer in step eight.

On your piece of paper, write:

So for example, if your answer in step one was 100,000, and your answer in step six was 0.004166666666, and your answer in step eight was 1.283358627 then you would write:

Move on to step ten.

US home mortgage payment formula: Step ten

The tenth step of using this US home mortgage payment formula, is to take your answer from step eight and subtract the number "1."

On your piece of paper, write:

So for example, if your answer in step eight was 1.283358627then you would write:

Move on to step eleven.

US home mortgage payment formula: Step eleven

The eleventh step of using this US home mortgage payment formula, is to take your answer from step nine and divide it by your answer from step ten.

The answer to this step will be the amount your monthly home mortgage payments could be.

On your piece of paper, write:

So for example, if your answer in step nine was 534.7326758 and your answer in step ten was 0.283358627 then you would write:

To calculate what your bi-weekly and/or weekly home mortgage payments would be, move on to step twelve.

US home mortgage payment formula: Step twelve

The twelfth step of using this US home mortgage payment formula, is to take your answer from step eleven and use it to calculate your bi-weekly and weekly home mortgage payments.

• To calculate your bi-weekly accelerated home mortgage payments, divide your answer from step eleven by the number "2." View an example.
• To calculate your bi-weekly normal/non-accelerated home mortgage payments, times your answer from step eleven by the number "12." Then, divide that answer by the number "26." View an example.
• To calculate your weekly accelerated home mortgage payments, divide your answer from step eleven by the number "4." View an example.
• To calculate your weekly normal/non-accelerated home mortgage payments, times your answer from step eleven by the number "12." Then, divide that answer by the number "52." View an example.

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Do you have questions about this US home mortgage formula? Contact The Mortgage Store Online's brokers by using the contact form or calling them at 1-866-880-2577.